What is the accounting profit that fred would get in his, Ask an Expert

Economics

Your friend Fred is considering opening a ski shop in Colorado. He knows you are doing your MBA at Midland and is asking for some free consultation on the profits that he would make on his venture. Assume Fred will incur the following costs: building rent = $100,000/year, inventory = $250,000/year, energy = $50,000/year and labor (one clerk) = $10,000/year. In addition, Fred's current income as a computer programmer is $40,000 per year. Assuming Fred would earn $460,000/year in revenues from his ski shop. What is the accounting profit that Fred would get in his venture? What is the economic profit that Fred would get in his venture? Would you recommend Fred go ahead with his venture? Why?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9439517

Have any Question?Write your Review or question?

Related Questions in Business Economics

In the course of producing its output this firm causes

In the course of producing its output, this firm causes pollution. The government passes a law that requires the firm to stop polluting, and the firm discovers that it can prevent the pollution by hiring 0.2 workers for ...

A five-year bond with a yield of 11 continuously compounded

A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bo ...

A team of researcher randomly separates their studys

A team of researcher randomly separates their Study's participants into two groups, giving one group a placebo and the other a new treatment to be tested. As the treatment i not experimental, both participants and resear ...

Inbspa statistics instructor wants to measure the

I. A statistics instructor wants to measure the effectiveness of his teaching skills in a class of 66 students ( N = 66). He selects students by waiting at the door to the classroom prior to his lecture and pulling asi ...

What are the key principles and tenets that any educated

What are the key principles and tenets that any educated person should know regarding the science of economics and their applicability in the world today?

You spoke with 10 people you know and found that they went

You spoke with 10 people you know and found that they went out 3, 2, 1, 5, 4, 2, and 3 times last week. You then would choose to calculate a 95% (or another level) confidence interval for the population mean.

A random sample of the closing stock prices in dollars for

A random sample of the closing stock prices in dollars for a company in a recent year is listed below. Assume that sigma σ is ?$2.59. Construct the 90?% and 99?% confidence intervals for the population mean. Interpret th ...

In defining demand and supply why do economists focus on

In defining demand and supply, why do economists focus on price while holding constant other factors that might have an impact on the behavior of buyers and sellers?

You have been selected to participate in a free-throw

You have been selected to participate in a free-throw challenge for the halftime entertainment during a basketball game. You will have the opportunity to shoot 2 baskets, from the free-throw line. If you make one basket, ...

Jen and barry get sued by ben amp jerrys for trademark

Jen and Barry get sued by "Ben & Jerry's" for trademark infringement. Jen and Barry lose, and they need a LOT of money. They decide to play Tennetucky's "Mega-6" lottery. They'll win the jackpot if they correctly choose ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert